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Avation plc (GB:AVAP)
:AVAP

Avation (AVAP) AI Stock Analysis

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GB

Avation

(LSE:AVAP)

Rating:67Neutral
Price Target:
159.00p
▲(9.66%Upside)
Avation PLC shows a solid valuation with a low P/E ratio, indicating potential undervaluation. The company's financial performance is improving, with strong cash flows and operational efficiency gains, offset by revenue volatility and high leverage. Positive corporate events, including strategic debt reduction and market expansion, further support the stock's outlook.

Avation (AVAP) vs. iShares MSCI United Kingdom ETF (EWC)

Avation Business Overview & Revenue Model

Company DescriptionAvation PLC, together with its subsidiaries, leases commercial passenger aircraft to airlines worldwide. As of June 30, 2021, the company owned and managed a fleet of 44 aircraft. It is also involved in the financing business. The company was founded in 2006 and is headquartered in Singapore.
How the Company Makes MoneyAvation makes money primarily through the leasing of its aircraft to airlines. The company generates revenue by charging lease rentals, which are typically structured as long-term agreements, providing predictable and stable cash flows. Additionally, Avation earns money through the sale of aircraft and possibly provides ancillary services related to fleet management. Key factors contributing to its earnings include the demand for air travel, the company's ability to acquire and maintain a modern fleet, and its relationships with airline customers. Significant partnerships with aircraft manufacturers and financiers also play a crucial role in supporting its operations and financial performance.

Avation Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
Jun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
89.48M93.65M109.84M110.79M138.50M
Gross Profit
-3.83M-14.31M3.05M4.24M34.65M
EBIT
83.22M70.63M90.18M-62.71M70.36M
EBITDA
29.70M20.48M40.80M79.44M103.24M
Net Income Common Stockholders
19.73M12.19M17.13M-84.89M9.71M
Balance SheetCash, Cash Equivalents and Short-Term Investments
34.31M128.14M122.89M122.47M114.58M
Total Assets
1.14B1.18B1.22B1.28B1.42B
Total Debt
675.50M755.98M828.13M947.64M1.07B
Net Debt
651.94M639.07M708.96M825.17M957.15M
Total Liabilities
885.92M937.96M989.93M1.13B1.19B
Stockholders Equity
256.39M241.63M227.09M156.94M220.95M
Cash FlowFree Cash Flow
81.56M48.38M54.46M62.18M29.77M
Operating Cash Flow
81.57M48.39M54.48M62.28M88.51M
Investing Cash Flow
13.21M38.52M65.62M20.08M-58.74M
Financing Cash Flow
-96.03M-97.36M-109.90M-92.59M-56.17M

Avation Technical Analysis

Technical Analysis Sentiment
Negative
Last Price145.00
Price Trends
50DMA
145.66
Negative
100DMA
145.09
Negative
200DMA
148.30
Negative
Market Momentum
MACD
-0.42
Positive
RSI
45.17
Neutral
STOCH
26.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:AVAP, the sentiment is Negative. The current price of 145 is below the 20-day moving average (MA) of 147.55, below the 50-day MA of 145.66, and below the 200-day MA of 148.30, indicating a bearish trend. The MACD of -0.42 indicates Positive momentum. The RSI at 45.17 is Neutral, neither overbought nor oversold. The STOCH value of 26.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:AVAP.

Avation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
£134.20M2.9146.48%13.52%
67
Neutral
£96.55M4.4312.33%0.34%8.36%
66
Neutral
$4.51B12.295.40%248.53%4.14%-12.41%
GBAA4
55
Neutral
£151.08M-0.02%15.73%-5.22%-100.30%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:AVAP
Avation
145.50
6.91
4.99%
GB:DNA3
Doric Nimrod Air Three
61.00
14.05
29.93%
GB:AA4
Amedeo Air Four Plus
57.20
19.71
52.57%

Avation Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Avation PLC Continues Strategic Note Repurchase Program
Positive
May 9, 2025

Avation PLC has announced its continued commitment to repurchasing Avation Capital S.A. Senior PIK Toggle Notes due 2026 as part of its global medium-term note program. The company will provide quarterly updates on the repurchases, with immediate announcements for significant transactions, reflecting its strategic financial management and potential impact on its financial stability and stakeholder confidence.

Private Placements and FinancingBusiness Operations and Strategy
Avation PLC Repurchases Senior Notes to Optimize Financial Strategy
Neutral
May 6, 2025

Avation PLC has repurchased US$3.5 million of its Senior PIK Toggle Notes due 2026, acquired at 97.5% of face value, and will cancel them, leaving US$320 million in outstanding notes. This move reflects Avation’s ongoing financial management strategy, potentially impacting its debt profile and signaling a focus on strengthening its balance sheet.

Private Placements and FinancingBusiness Operations and Strategy
Avation PLC Repurchases Senior Notes to Optimize Financial Structure
Positive
Apr 29, 2025

Avation PLC has repurchased US$1.94 million of its Senior PIK Toggle Notes due 2026 at 97.50% of face value, reducing the outstanding notes to approximately US$324.6 million. This strategic move is likely to impact the company’s financial structure and could influence its market positioning by potentially improving its debt profile.

Stock BuybackBusiness Operations and Strategy
Avation PLC Repurchases Shares, Adjusts Voting Rights
Neutral
Apr 28, 2025

Avation PLC has repurchased 25,000 ordinary shares at 150 pence per share, which will be held in treasury, affecting the total number of voting rights in the company. This transaction highlights Avation’s strategic financial management, potentially impacting shareholder calculations under the FCA’s rules.

Private Placements and FinancingBusiness Operations and Strategy
Avation PLC Repurchases Senior Notes to Strengthen Financial Position
Positive
Apr 17, 2025

Avation PLC has repurchased US$3 million of its Senior PIK Toggle Notes due 2026, at 97.50% of face value, under its global medium term note programme. This move reduces the outstanding notes to US$326,555,981, potentially strengthening Avation’s financial position and demonstrating its commitment to managing debt effectively.

Product-Related AnnouncementsBusiness Operations and Strategy
Avation PLC Enters South American Market with New Lease Agreement
Positive
Apr 9, 2025

Avation PLC has announced a new six-year lease agreement with Colombian airline Clic Air for an ATR 72-600 aircraft, marking the company’s entry into the South American market. This strategic move is expected to enhance Avation’s growth and expand its market presence, while establishing a new customer relationship with Clic Air.

Business Operations and Strategy
Avation PLC Grants Share Warrants to Boost Employee Incentives
Positive
Apr 8, 2025

Avation PLC has announced the grant of 565,000 share warrants to its directors and employees as part of its long-term incentive plan. These warrants, issued at an exercise price of 132 pence per share, are designed to align with the company’s Remuneration Policy and will vest over three years. This move is expected to enhance employee engagement and align the interests of the staff with those of the shareholders, potentially impacting the company’s operational dynamics and market positioning.

M&A TransactionsBusiness Operations and Strategy
Avation PLC Expands Fleet with Airbus A320 Acquisition
Positive
Mar 26, 2025

Avation PLC has successfully completed the acquisition of an Airbus A320 aircraft, which will be leased to Etihad Airlines until October 2031. This acquisition expands Avation’s fleet to 33 aircraft and enhances its customer base by adding a high-credit airline, further diversifying its operations across 16 airlines in 14 countries.

Delistings and Listing Changes
Avation PLC Lists New Ordinary Shares on London Stock Exchange
Neutral
Mar 21, 2025

Avation PLC announced the effective listing and commencement of trading for 278,371 new ordinary shares on the London Stock Exchange as of March 21, 2025. This move increases the total number of ordinary shares in issue to 74,950,257, with 66,820,257 total voting rights, potentially impacting shareholder voting percentages.

Private Placements and FinancingBusiness Operations and Strategy
Avation PLC Reduces Debt with Note Repurchase
Positive
Mar 14, 2025

Avation PLC has repurchased US$2,000,000 of its Senior PIK Toggle Notes due 2026 at 98.5% of face value, reducing the outstanding notes to US$329,555,981. This strategic move is part of Avation’s efforts to manage its debt portfolio, potentially strengthening its financial position and enhancing its market competitiveness.

Delistings and Listing ChangesPrivate Placements and Financing
Avation PLC Announces New Share Allotment and Directors’ Dealings
Positive
Mar 11, 2025

Avation PLC announced the allotment of 278,371 new ordinary shares following the exercise of staff and listed warrants, representing approximately 0.37% of the company’s enlarged capital. This exercise generated proceeds of £296,721.42, which will be used for general corporate purposes. The new shares are expected to be admitted to trading on the London Stock Exchange by 19 March 2025. Additionally, Robert Jeffries Chatfield, a director, increased his holdings to 18.53% of the voting rights through subscription and a trust transfer, reflecting significant insider engagement and potential confidence in the company’s future.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.